The behavior of U.S. States’ debts and deficits
Do governments satisfy an intertemporal budget constraint? This paper uses a panel of U.S. state data from 1978-1998 to empirically investigate whether primary surpluses respond to rising debt/GDP ratios. Instead of relying solely on the time-series characteristics of various data series, the paper...
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| Language: | English |
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Institute of Public Finance
2019-09-01
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| Series: | Public Sector Economics |
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http://www.pse-journal.hr/upload/files/pse/2019/3/3.pdf
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doaj-17ccec4668a947ecb9c1bee93d3bf5772020-11-25T02:42:26ZengInstitute of Public FinancePublic Sector Economics2459-88602019-09-0143326728910.3326/pse.43.3.34449The behavior of U.S. States’ debts and deficitsMaria Cornachione Kula0 Gabelli School of Business, Roger Williams University, Bristol, USA Do governments satisfy an intertemporal budget constraint? This paper uses a panel of U.S. state data from 1978-1998 to empirically investigate whether primary surpluses respond to rising debt/GDP ratios. Instead of relying solely on the time-series characteristics of various data series, the paper focuses on the response of primary surpluses when cyclical fluctuations in output and government spending are explicitly considered. Results suggest no surplus response to the accumulation of debt, whether or not cyclical fluctuations are controlled for, in contrast to similar studies done using U.S. federal government data. http://www.pse-journal.hr/upload/files/pse/2019/3/3.pdf fiscal policy; fiscal sustainability; public debt; budget deficits |
| collection |
DOAJ |
| language |
English |
| format |
Article |
| sources |
DOAJ |
| author |
Maria Cornachione Kula |
| spellingShingle |
Maria Cornachione Kula The behavior of U.S. States’ debts and deficits Public Sector Economics fiscal policy; fiscal sustainability; public debt; budget deficits |
| author_facet |
Maria Cornachione Kula |
| author_sort |
Maria Cornachione Kula |
| title |
The behavior of U.S. States’ debts and deficits |
| title_short |
The behavior of U.S. States’ debts and deficits |
| title_full |
The behavior of U.S. States’ debts and deficits |
| title_fullStr |
The behavior of U.S. States’ debts and deficits |
| title_full_unstemmed |
The behavior of U.S. States’ debts and deficits |
| title_sort |
behavior of u.s. states’ debts and deficits |
| publisher |
Institute of Public Finance |
| series |
Public Sector Economics |
| issn |
2459-8860 |
| publishDate |
2019-09-01 |
| description |
Do governments satisfy an intertemporal budget constraint? This paper uses a panel of U.S. state data from 1978-1998 to empirically investigate whether primary surpluses respond to rising debt/GDP ratios. Instead of relying solely on the time-series characteristics of various data series, the paper focuses on the response of primary surpluses when cyclical fluctuations in output and government spending are explicitly considered. Results suggest no surplus response to the accumulation of debt, whether or not cyclical fluctuations are controlled for, in contrast to similar studies done using U.S. federal government data. |
| topic |
fiscal policy; fiscal sustainability; public debt; budget deficits |
| url |
http://www.pse-journal.hr/upload/files/pse/2019/3/3.pdf
|
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AT mariacornachionekula thebehaviorofusstatesdebtsanddeficits AT mariacornachionekula behaviorofusstatesdebtsanddeficits |
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